PR 17-2A Cost of Production Report Obj. 2, 4 Hana Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at July 31: ACCOUNT Work in Process Roasting Department ACCOUNT NO. Balance Date Item Debit Credit Debit Credit July 1 Bal., 30,000 units, 10% completed 31 Direct materials, 155,000 units 31 Direct labor 31 Factory overhead 31 Goods transferred, 149,000 units 31 Bal., ? units, 45% completed 620,000 90,000 33,272 121,800 741,800 831,800 865,072 ? ? Instructions 1. Prepare a cost of production report, and identify the missing amounts for Work in Process -Roasting Department. Answer Check Figure: Conversion cost per equivalent unit, $0.76 2. Assuming that the July 1 work in process inventory includes $119,400 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between June and July. T 125% Zoom I Shape Media Comment lo Collaborate View Add Category Insert Table Chart Text Format Organize Pr. 17(3)-2 Sol Sheet Sheet Name Key Code: Key code here Instructions Answers are entered in the calls with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. Pr. 17(3)-2A Background 1. Hana Coffee Company Cost of Production Report. Roasting Department For the Month Ended July 31 Duplicate Sheet UNIT Delete Sheet Equivalent Units Direct Materials Conversion Whole Units Units charged to production: Inventory in process, July 1 Received from materials storeroom Tolal units accounted for by the Roasting Department completo) Units to be assigned cost: Inventory in process, July 1 Started and completed in July Transferred to Packing Department in July Inventory in process, July 31 ( Total units to be assigned costs complete) COS Costs Conversion Direct Materials Total Cost per equivalent unit: Total costs for July in Roasting Department Total equivalent units Cost per equivalent unit Costs assigned to production Inventory in process, July 1 Costs incurred in July Total costs accounted for by the Roasting Department Costs allocated to comploted and partially completed units: Inventory in proceso, July 1 To complete inventory in process, July 1 Cost of completed July 1 work in process Started and completed in July Transferred to Packing Department in July 125% DY View Insert Table T Text lo Collaborate Zoom Add Category Chart Shape Media Comment Format Organize + Pr. 17(3)-2A Sol Sheet cos Sheet Name Costa Conversion Direct Materials Tatal Pr. 17(3)-2A Cost per equivalent unit Total costs for July in Roasting Department Total equivalent units Cost per equivalent unit Background Costs assigned to production Inventory in process, July 1 Costs incurred in July Total costs accounted for by the Roasting Department Duplicate Sheet Delete Sheet Cosis allocated to completed and partially completed units: Inventory in process, July 1 To complete inventory in process, July 1 Cost of completed July 1 work in process Started and completed in July Transferred to Packing Department in July Inventory in process, July 31 Total costs assigned by the Roasting Department 2. July 1, work in proce Less direct materials Conversion costs Conversion cost equivalent units: Units in process Percent complete Equivalent units Direct Materials Conversion July costs per equivalent unit (from part 1) June costs per equivalent ur Total costs in Work in Process, July 1 Total equivalent units Cost per equivalent unit Increase (decrease)
